LECCE, 12th JUNE 2009: LAUNCH OF THE AMC INITIATIVE
A High-Level event in the margins of the G8 Finance Ministers’ Pre-Summit Meeting in Lecce will mark on 12 June 2009 the launch of the implementation phase of the Advance Market Commitment (AMC) pilot project. The main aim of the AMC project is to accelerate research for the development and production of a vaccine against pneumococcal diseases, one of the main causes of child mortality in developing countries.
This is a landmark achievement, attained three and a half years after the issuance of the Tremonti Report (December 2005), which had put forward to the G8 Finance Ministers the proposal to translate into practice the theoretical investment model known as Advance Market Commitments (AMCs), aimed at encouraging the development and production of vaccines suitable for the needs of developing countries.
The AMC scheme aims to address and overcome the market failure related to the lack, or inadequacy, of private resources for vaccine research, key to fighting infectious diseases in developing countries. Usually pharmaceutical companies have very little interest in investing in this type of research, since developing countries cannot afford these vaccines when they are developed because they lack the necessary resources. Through the AMC scheme, instead, donors create a market by securing the necessary resources to buy the vaccines in case these are actually identified and developed.
The AMC pilot project is supported by six donors who have contributed up to 1.5 billion US $: Italy (635$ million), United Kingdom (485$ million), Canada (200$ million), Russia (80$ million), Norway (50$ million) and the Bill and Melinda Gates Foundation (50$ million). Also the World Bank, the GAVI Alliance, UNICEF and WHO have provided an invaluable contribution to the definition of the structure and design of the project.
After a long preparatory process and the approval from all the stakeholders of the relevant legal agreements, finally the implementation phase of the AMC – which can be regarded as an innovative financing mechanism - will be celebrated in Lecce. From that moment onwards, pharmaceutical companies interested in the project will be able to register according to predetermined procedures. In this way they will become AMC partners and will start to work at the development and production of pneumococcal vaccines.
For the first time, through the joint efforts of six donors and the International Organizations involved, poor countries will benefit from otherwise impossible access to vaccines which will avert almost 1 million deaths a year.
The event, at the presence of Minister Giulio Tremonti, will take place on 12 June 2009 in Lecce. All donors and International Organizations involved in the project will attend.
Rome, 25 May 2009
For further information:
Ministero dell'Economia e delle Finanze
Tel. 06/4761.4605 - 4625 - 4606